Fed Minutes Show Unanimous Support for 25-Basis-Point Rate Hike, Signal Another Increase May Come This Year
Summary
- All participants at the Fed meeting supported a 25-basis-point benchmark rate increase.
- Most participants said one additional rate hike by year-end could be appropriate.
- Almost all participants judged that inflation risks remained tilted to the upside.
Forecast Trend Report by Period
All participants at the Federal Reserve's meeting supported a 25-basis-point interest-rate increase, and most said one additional hike by year-end could be appropriate.
Minutes released by the Fed on October 7 showed unanimous backing for the quarter-point increase. Most participants also viewed one more rate hike this year as potentially appropriate.
Almost all participants judged that inflation risks remained tilted to the upside. By contrast, they viewed risks related to the labor market as broadly balanced.
The Fed staff's economic outlook was stronger than at the July meeting. Many participants also judged that financial conditions were still supporting economic growth despite the recent rise in long-term Treasury yields.
Policymakers said they would determine the path of interest rates based on incoming economic data.
JH Kim
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